Why You Should Become Financially Independent As Soon As Possible After A Divorce
Becoming financially independent after a divorce can be both exciting and daunting. The latter is true if you’ve never been financially independent before in your life, and you’ve lived your adult years under the guidance and dependency of your ex. Regardless of how you feel about this step, financial independence should be a priority as soon as it’s clear your marriage is coming to an end. But why is this, and what steps can you take to make yourself a separate financial entity from your spouse?
Why is Financial Independence Important?
Financial independence is important as soon as your relationship comes to an end. This is due to a number of reasons. First, your ex can withdraw funds from joint accounts without your consent. This might allow them to take funds and conceal them before you have a chance to access them. This is true for virtually all accounts under both spouses’ names – whether it’s a savings account, a checking account, a credit card, and so on.
Your spouse might also begin spending money frivolously or irresponsibly with funds from your joint accounts and credit cards. Since the account is in both names and you are legally still married, you may be left holding the bill for these debts and expenditures. For example, your spouse might purchase a sports car with your money. Or perhaps they take out a line of credit before concealing the money. Perhaps they will go out for a late-night, alcohol-induced trip to the casino before losing your entire life savings. By removing yourself from these joint accounts, you can avoid liability for any ensuing debts.
Financial independence is also important for estate planning as you approach a divorce. This is especially true for contentious, non-amicable divorces. If you feel completely mistreated, abused, or insulted by your ex, you probably don’t want them to inherit your assets after you pass. But anything could happen within the next few months and years as you finalize your divorce – and this is why it’s best to remove your spouse as a beneficiary and pursue total financial independence as soon as possible.
What Steps Should I Take?
One option is to freeze joint accounts so that this money can be dealt with later according to a proper, fair legal process. But the best thing to do in this situation is to simply pursue a divorce as quickly as possible. Once you have established a “date of separation” with help from a lawyer, you no longer need to worry about many financial issues – including liability for your ex’s debts. This is because all debts and assets you acquire are considered “separate property” – and they do not factor into the property division process.
Where Can I Find a Divorce Attorney in Georgia?
If you’ve been searching for a qualified, experienced Atlanta divorce attorney, look no further than Kaye, Lembeck, Hitt & French. With our assistance, you can take the necessary steps to protect your finances right away. We will protect your assets and watch for any financial misconduct committed by your ex. With our help, you can approach the property division process with confidence and efficiency – ensuring total financial security in your post-divorce life. Book your consultation today to get started with an effective action plan.
Sources:
forbes.com/advisor/banking/joint-bank-accounts-during-a-breakup-what-you-should-know/
fool.com/the-ascent/banks/articles/getting-divorced-heres-what-happens-to-your-joint-bank-account/
